Following the collapse of Lehman Brothers, a key trigger of the subsequent worldwide economic crisis, the financial system is now undergoing a series of structural changes, under close scrutiny from policy makers and public stakeholders.
The industry is facing many challenges, for instance regulatory changes to the banking system need to ensure that financial institutions remain solvent by building up sufficient reserves. It is also important to improve our understanding of complex financial derivatives that have been under attack because they often leave banks and private investors with risks that are difficult to assess. New and innovative solutions to these issues are crucial and research related to risk management standards, banking regulation, performance measurement and corporate governance are now at the top of our research agenda.
Finance and Accounting
Finance and Accounting research at Sussex has an international focus with particular emphasis on practical problems that are of relevance to market practitioners and policy makers.
We develop innovative risk and pricing models that are used in the industry, most recently we have contributed to the improvement of the design and pricing of complex financial products and our contributions have led to improvements in the risk management of popular financial innovations such as variance swaps.
Our research in banking includes issues in bank competition and efficiency, regulation and bank restructuring. We address many of the challenges of the recent financial crisis by influencing policy decisions as well as contributing to international conferences and forums. One of our key areas of expertise is the development of theoretical and empirical models to examine the roots of the financial crises with a special emphasis on bank regulation. Experts in the group publish in highly-ranked journals and frequently act as consultants for banks, asset managers, software companies, exchanges and governments.
Our research at Sussex is interdisciplinary and our team combines theories of finance and accounting with methods of financial economics or organisational behaviour to address current issues relating to risk management and performance and control in private, public and non-profit organisations. We also actively investigate innovative research links between corporate governance and either emerging markets finance or market efficiency and microstructure analysis. We work in close cooperation with colleagues from other departments to develop solutions to current issues in accounting and finance.